It seems that Mumbai based Rediff.com strategies, to come out of the losses of the previous fiscal year, are showing their results. As disclosed in a recently released earnings report for its first quarter ended June 30, 2013. Rediff.com reported a Net loss of USD 1.87 million, a 35% fall from USD 2.27 million in similar quarter previous year. The overall revenues in the quarter were USD 4.11 million, showing a 12% increase over the 2012 first fiscal quarter.
The Indian operations of the company get the total revenue increase of approx. 21% at USD 3.37 million, including online advertising revenues of USD 2.19 million and fee-based revenues of USD 1.18 million. Also, the Company reported an Operating EBITDA loss of USD 1.47 million over an EBITDA loss of USD 2.27 million in the comparable year-ago period.
The company’s gross margin got increased by 44% compared to 32% for the same quarter last fiscal year. Additionally, in online Marketplace business, Rediff.com successfully maintained a 12% positive product margin for the quarter with continous increase in vendors and SKU’s to their offering.
“I believe our concentrated efforts on conserving cash will take us a step closer towards profitability, especially as our margins increase and our top-line grows”, said Ajit Balakrishnan, Chairman and Chief Executive Officer of Rediff.com.
Currently headquartered in Mumbai, India with offices in New Delhi and New York, USA, Rediff.com get around 89.1% of the millions of visitors from India, while the rest come primarily from the USA (3.4%) and China.
In India, the services provided by Rediff.com include Rediff mail, web based mail service; Rediff Bol, instant messenger with support for Hindi language social; Rediff Songbuzz, music search & discovery service featuring Hindi music primarily and Rediff Locale, a local news portal.
It also offers various other web based services such as a web search, shopping, online rakhi store, classifieds, a matrimonial service, social networking, blogging, a music-video sharing platform and a community-driven knowledge base.